From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2684 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Wednesday, July 31 2002 Volume 02 : Number 2684 In this issue: Re: [CANSLIM] DCOM - B/O rules Re: [CANSLIM] Charts Re: [CANSLIM] DCOM - B/O rules Re: [CANSLIM] DCOM - B/O rules ---------------------------------------------------------------------- Date: Wed, 31 Jul 2002 05:47:39 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] DCOM - B/O rules This is a multi-part message in MIME format. - ------=_NextPart_000_0018_01C23855.C7DFBE20 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Mike, Here's a quote from today's "Big Picture" Dime Community Bancshares (DCOM), which was highlighted in Monday = evening's WebLink, broke out of a 10-week, double-bottom base. The stock = climbed 1.46 to 26.90 on more than four times normal volume. Katherine ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 11:37 PM Subject: RE: [CANSLIM] DCOM - B/O rules I see it more as a cup-with-handle (but when the only tool you have is = a hammer, everything looks like a nail!) because the two dips were not = of equal depth, but I'm not sure what the tolerance limits are. However, as a CwH it formed a pivot at $25.90 on 7/10. It then went on = to dip to a low of $20.20 in the handle, which was a 22% drop. WON says = that a stock should only correct by at most 15% in the handle (although = there are inconsistent statements on this) so it didn't qualify as a CwH = either (but then virtually nothing has in the last couple of weeks). = Nevertheless, todays breakout was very strong and could be buyable up to = $27.12 (5% above pivot). Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Tuesday, July 30, 2002 2:46 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DCOM - B/O rules Hi Victor, I'll leave the specific analysis of the DCOM chart to somebody else, = but in the meantime, here's something to get you started: Question=20 Can a double-bottom base have a handle, or is it just the = start of another base?=20 =20 Answer=20 In a double-bottom base, the pivot (buy) point typically = occurs when the stock clears the peak in the middle of the W-shaped = pattern. Sometimes, double bottoms will form handles before they reach = this point. In those situations, the pivot point is when the stock = clears the highest price point in the handle area. The handle should = drift downward slightly and usually form over a period of one to seven = weeks. Course 1 in the IBD Learning Center on our Web site has a = lesson on chart reading. To get there directly, go to this link - = http://www.investors.com/learn/B09.asp=20 Also, go to our Investor's Corner archive entitled "What Can = Technical Indicators Tell Me?" to view past articles on this topic - = http://www.investors.com/learn/IC.asp#tech=20 Our "Ask Bill O'Neil" archive offers a compilation of Q&A's on = the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5 --Katherine=20 ----- Original Message -----=20 From: vchang@win-invest.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 7:18 PM Subject: [CANSLIM] DCOM - B/O rules MessageOn Wedsday's edition (today) IBD listed DCOM as b/o from a = double bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 Monday, = just missing a breakout..." . As a newbie trying to learn more about charts and breakouts, this = seems like a great example to check my understanding. If I am getting it right, the reason why DCOM is deemed to have = b/o is because of the following two easons: a) It closed at 26.90 having achieved an high of 27.0, and that is = above the previous high of 26.80 back in May 17, 2002. b) The new high was achieved at a volume 1,056,800 which is 378% = up from the day before and four times the average daily volume of 221,100 What is the exact rule for a breakout mathematically? (Lets say = that I were to program it in say Metastock?) Base on this case I can see two rules at least (in pseudo-code): IF today's high is greater than the previous high (is this the all = time high or just the rolling 52 week high?) AND IF today's volume is greater than N times the normal volume (is = this some sort of moving average of the daily volume, or just yeaterday's = volume) THEN yippe it is a B/O Is there any "fuzziness" to the above rules? BTW, the fundamentals on DCOM also look great, ignoring M for a = moment, is this a valid CANSLIM candidate stock? Rgds Victor Chang - ------=_NextPart_000_0018_01C23855.C7DFBE20 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Mike,
 
Here's a quote from today's "Big Picture"

Dime Community Bancshares (DCOM),=20 which was highlighted in Monday = evening's=20 WebLink, broke out of a 10-week, double-bottom base. The = stock=20 climbed 1.46 to 26.90 on more than four times normal volume.

Katherine

----- Original Message -----
From:=20 Mike Gibbons
To: canslim@lists.xmission.com=
Sent: Tuesday, July 30, 2002 = 11:37=20 PM
Subject: RE: [CANSLIM] DCOM - = B/O=20 rules

I=20 see it more as a cup-with-handle (but when the only tool you have is a = hammer,=20 everything looks like a nail!) because the two dips were not of equal = depth,=20 but I'm not sure what the tolerance limits are.
 
However, as a CwH it formed a pivot at $25.90 on 7/10. It = then went on=20 to dip to a low of $20.20 in the handle, which was a 22% drop. WON = says that a=20 stock should only correct by at most 15% in the handle (although there = are=20 inconsistent statements on this) so it didn't qualify as a CwH either = (but=20 then virtually nothing has in the last couple of weeks). Nevertheless, = todays=20 breakout was very strong and could be buyable up to $27.12 (5% above=20 pivot).
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Tuesday, July 30, 2002 2:46 PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

Hi Victor,
 
I'll leave the specific analysis of the DCOM chart to somebody = else,=20 but in the meantime, here's something to get you started:
 
Question
  Can a double-bottom base have a handle, or = is it=20 just the start of another base?
3D""=20
  Answer
 
In a double-bottom base, the pivot=20 (buy) point typically occurs when the stock clears the peak in = the=20 middle of the W-shaped pattern. Sometimes, = double=20 bottoms will form handles before they reach this point. In = those=20 situations, the pivot point is when the stock clears the = highest price=20 point in the handle area. The handle should drift downward = slightly=20 and usually form over a period of one to seven = weeks.

Course 1=20 in the IBD Learning Center on our Web site has a lesson on = chart=20 reading. To get there directly, go to this link - http://www.investors.com/learn/B09.asp=20

Also, go to our Investor's Corner archive entitled = =93What Can=20 Technical Indicators Tell Me?=94 to view past articles on this = topic -=20 http://www.investors.com/learn/IC.asp#tech=20

Our =93Ask Bill O=92Neil=94 archive offers a = compilation of=20 Q&A=92s on the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?Topic= ID=3D5
 
--Katherine
----- Original Message ----- =
From:=20 vchang@win-invest.com =
To: canslim@lists.xmission.com= =20
Sent: Tuesday, July 30, = 2002 7:18=20 PM
Subject: [CANSLIM] DCOM - = B/O=20 rules

MessageOn Wedsday's edition (today) IBD listed DCOM = as b/o=20 from a double
bottom.  On Tuesday IBD weblink said " ... = Dime hit=20 25.94 Monday, just
missing a breakout..." .

As a newbie = trying=20 to learn more about charts and breakouts, this seems like
a = great=20 example to check my understanding.

If I am getting it = right, the=20 reason why DCOM is deemed to have b/o is
because of the = following two=20 easons:

a) It closed at 26.90 having achieved an high of = 27.0, and=20 that is above the
previous high of 26.80 back in May 17,=20 2002.

b) The new high was achieved at a volume 1,056,800 = which is=20 378% up from the
day before and four times the average daily = volume of=20 221,100

What is the exact rule for a breakout = mathematically? (Lets=20 say that I were
to program it in say Metastock?)

Base on = this=20 case I can see two rules at least (in pseudo-code):

IF = today's high=20 is greater than the previous high (is this the all time high
or = just=20 the rolling 52 week high?)
AND
IF today's volume is greater = than N=20 times the normal volume (is this some
sort of moving average of = the=20 daily volume, or just yeaterday's volume)
THEN yippe it is a=20 B/O

Is  there any "fuzziness" to the above = rules?

BTW,=20 the fundamentals on DCOM also look great, ignoring M for a moment, = is
this a valid CANSLIM candidate = stock?

Rgds

Victor=20 = Chang


- ------=_NextPart_000_0018_01C23855.C7DFBE20-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 07:10:21 -0400 From: "Donald Wallker" Subject: Re: [CANSLIM] Charts This is a multi-part message in MIME format. - ------=_NextPart_000_000F_01C23861.55295330 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I'm under the impression that there is one thing you can't find in a = chart. That is, the after hours trading volume. tThus it seems that the = volume for the day is cast in concrete at the closing bell. Has anyone = out there found a correlation between the volume of after hours trading = and anything that occurs the next day?=20 ----- Original Message -----=20 From: LP2715@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 10:45 PM Subject: [CANSLIM] Charts The one thing=20 we like most about charts is that there is no "opinion" involved. In = other words,=20 what you see is what you get. If a stock has moved up to say the $100 = level=20 3 times and got repelled each time, and now it's back to 99.88 it is = there in=20 "black and white" for all to see, and it is either going=20 to bust through and make a nice run or it will get repelled yet again. = No opinion,=20 no talking heads, no guessing, nothing. It will either breakout or = fail again.=20 You cannot "alter the picture", so when you pull up a chart, it will = show you=20 exactly what has happened and on that information you can watch for = the breakout.=20 Learning how to play chart patterns is very important for us as = traders, so please=20 learn all you can about it.=20 This next point is one of the single most important items involved = with making successful=20 chart trades. If a stock is testing a resistance level, such as in = the example=20 we used above, it will certainly help to have the "market" behind you = when you=20 are looking for the breakout. Remember that in day to day life, sector = strength=20 and overall market "tone" is the most important aspect of trading. In = other words=20 if the DOW is down 275 and the NASDAQ is down 100, what are the = chances XYZ is=20 going to bust through that resistance level and run? Not much really. = On the=20 other hand if the DOW is up 175 and the NASDAQ is flying, XYZ very = well could=20 squirt through that old resistance and make a great move higher. So, = paramount=20 in trading chart patterns is to try and align a great chart with an = "up day".=20 This will greatly enhance your chances of scoring home runs!=20 For more trading tips just send a blank e-mail to: stocks2watch@GetResponse.com - ------=_NextPart_000_000F_01C23861.55295330 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I'm under the impression that there is = one thing=20 you can't find in a chart. That is, the after hours trading = volume.  tThus=20 it seems that the  volume for the day is cast in concrete at = the=20 closing bell.  Has anyone out there found a correlation between the = volume=20 of after hours trading and anything that occurs the next=20 day? 
----- Original Message -----
From:=20 LP2715@aol.com
To: canslim@lists.xmission.com=
Sent: Tuesday, July 30, 2002 = 10:45=20 PM
Subject: [CANSLIM] Charts

The one = thing
we=20 like most about charts is that there is no "opinion" involved. In = other words,=20
what you see is what you get. If a stock has moved up to say the = $100=20 level
3 times and got repelled each time, and now it's back to = 99.88 it is=20 there in
"black and white" for all to see, and it is either going =
to=20 bust through and make a nice run or it will get repelled yet again. No = opinion,
no talking heads, no guessing, nothing. It will either = breakout=20 or fail again.
You cannot "alter the picture", so when you pull up = a=20 chart, it will show you
exactly what has happened and on that = information=20 you can watch for the breakout.
Learning how to play chart = patterns is=20 very important for us as traders, so please
learn all you can = about it.=20

This next point is one of the single most important items = involved=20 with making successful
chart trades. If a stock is testing a  = resistance level, such as in the example
we used above, it will = certainly=20 help to have the "market" behind you when you
are looking for the=20 breakout. Remember that in day to day life, sector strength
and = overall=20 market "tone" is the most important aspect of trading. In other words =
if=20 the DOW is down 275 and the NASDAQ is down 100, what are the chances = XYZ is=20
going to bust through that resistance level and run? Not much = really. On=20 the
other hand if the DOW is up 175 and the NASDAQ is flying, XYZ = very=20 well could
squirt through that old resistance and make a great = move=20 higher. So, paramount
in trading chart patterns is to try and = align a=20 great chart with an "up day".
This will greatly enhance your = chances of=20 scoring home runs!

For more trading tips just send a blank e-mail = to:


stocks2watch@GetResponse.com

- ------=_NextPart_000_000F_01C23861.55295330-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 07:17:42 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] DCOM - B/O rules This is a multi-part message in MIME format. - ------=_NextPart_000_003C_01C23862.5C06DFA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I have to agree with IBD on this one, Mike. No cup & handle, definitely = would call this a double bottom. Keep in mind with a double bottom that = you don't want two dips of equal depth, rather you want the second one = undercutting the first. Same with a triple bottom. In this case, the = second dip reached its bottom on a reversal day and closed up. However = volume was not that impressive. An aggressive investor (and would take one in this market) could have = bought on 7/29, as it did trade over the high of the high of the center = point of the "W" (but only by 4 cents, and volume not impressive). But = yesterday's volume and price movement would mark this in my books as a = b/o from a double bottom. - ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 31, 2002 6:47 AM Subject: Re: [CANSLIM] DCOM - B/O rules Hi Mike, Here's a quote from today's "Big Picture" Dime Community Bancshares (DCOM), which was highlighted in Monday = evening's WebLink, broke out of a 10-week, double-bottom base. The stock = climbed 1.46 to 26.90 on more than four times normal volume. Katherine ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 11:37 PM Subject: RE: [CANSLIM] DCOM - B/O rules I see it more as a cup-with-handle (but when the only tool you have is = a hammer, everything looks like a nail!) because the two dips were not = of equal depth, but I'm not sure what the tolerance limits are. However, as a CwH it formed a pivot at $25.90 on 7/10. It then went on = to dip to a low of $20.20 in the handle, which was a 22% drop. WON says = that a stock should only correct by at most 15% in the handle (although = there are inconsistent statements on this) so it didn't qualify as a CwH = either (but then virtually nothing has in the last couple of weeks). = Nevertheless, todays breakout was very strong and could be buyable up to = $27.12 (5% above pivot). Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Tuesday, July 30, 2002 2:46 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] DCOM - B/O rules Hi Victor, I'll leave the specific analysis of the DCOM chart to somebody else, = but in the meantime, here's something to get you started: Question=20 Can a double-bottom base have a handle, or is it just the = start of another base?=20 =20 Answer=20 In a double-bottom base, the pivot (buy) point typically = occurs when the stock clears the peak in the middle of the W-shaped = pattern. Sometimes, double bottoms will form handles before they reach = this point. In those situations, the pivot point is when the stock = clears the highest price point in the handle area. The handle should = drift downward slightly and usually form over a period of one to seven = weeks. Course 1 in the IBD Learning Center on our Web site has a = lesson on chart reading. To get there directly, go to this link - = http://www.investors.com/learn/B09.asp=20 Also, go to our Investor's Corner archive entitled "What Can = Technical Indicators Tell Me?" to view past articles on this topic - = http://www.investors.com/learn/IC.asp#tech=20 Our "Ask Bill O'Neil" archive offers a compilation of Q&A's on = the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=3D5 --Katherine=20 ----- Original Message -----=20 From: vchang@win-invest.com=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, July 30, 2002 7:18 PM Subject: [CANSLIM] DCOM - B/O rules MessageOn Wedsday's edition (today) IBD listed DCOM as b/o from a = double bottom. On Tuesday IBD weblink said " ... Dime hit 25.94 Monday, = just missing a breakout..." . As a newbie trying to learn more about charts and breakouts, this = seems like a great example to check my understanding. If I am getting it right, the reason why DCOM is deemed to have = b/o is because of the following two easons: a) It closed at 26.90 having achieved an high of 27.0, and that is = above the previous high of 26.80 back in May 17, 2002. b) The new high was achieved at a volume 1,056,800 which is 378% = up from the day before and four times the average daily volume of 221,100 What is the exact rule for a breakout mathematically? (Lets say = that I were to program it in say Metastock?) Base on this case I can see two rules at least (in pseudo-code): IF today's high is greater than the previous high (is this the all = time high or just the rolling 52 week high?) AND IF today's volume is greater than N times the normal volume (is = this some sort of moving average of the daily volume, or just yeaterday's = volume) THEN yippe it is a B/O Is there any "fuzziness" to the above rules? BTW, the fundamentals on DCOM also look great, ignoring M for a = moment, is this a valid CANSLIM candidate stock? Rgds Victor Chang - ------=_NextPart_000_003C_01C23862.5C06DFA0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I have to agree with IBD on this one, = Mike.  No cup=20 & handle, definitely would call this a double bottom.  Keep in = mind=20 with a double bottom that you don't want two dips of equal depth, rather = you=20 want the second one undercutting the first. Same with a triple bottom. = In this=20 case, the second dip reached its bottom on a reversal day and closed up. = However=20 volume was not that impressive.
 
An aggressive investor (and would take one in = this market)=20 could have bought on 7/29, as it did trade over the high of the high of = the=20 center point of the "W" (but only by 4 cents, and volume not = impressive). But=20 yesterday's volume and price movement would mark this in my books as a = b/o from=20 a double bottom.
 
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=
Sent: Wednesday, July 31, 2002 6:47 AM
Subject: Re: [CANSLIM] DCOM - B/O rules

Hi Mike,
 
Here's a quote from today's "Big Picture"

Dime Community Bancshares (DCOM),=20 which was highlighted in Monday = evening's=20 WebLink, broke out of a 10-week, double-bottom base. The = stock=20 climbed 1.46 to 26.90 on more than four times normal volume.

Katherine

----- Original Message -----
From:=20 Mike Gibbons
Sent: Tuesday, July 30, 2002 = 11:37=20 PM
Subject: RE: [CANSLIM] DCOM - = B/O=20 rules

I=20 see it more as a cup-with-handle (but when the only tool you have is a = hammer,=20 everything looks like a nail!) because the two dips were not of equal = depth,=20 but I'm not sure what the tolerance limits are.
 
However, as a CwH it formed a pivot at $25.90 on 7/10. It = then went on=20 to dip to a low of $20.20 in the handle, which was a 22% drop. WON = says that a=20 stock should only correct by at most 15% in the handle (although there = are=20 inconsistent statements on this) so it didn't qualify as a CwH either = (but=20 then virtually nothing has in the last couple of weeks). Nevertheless, = todays=20 breakout was very strong and could be buyable up to $27.12 (5% above=20 pivot).
 
Aloha,
 
Mike Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Tuesday, July 30, 2002 2:46 PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM] DCOM - = B/O=20 rules

Hi Victor,
 
I'll leave the specific analysis of the DCOM chart to somebody = else,=20 but in the meantime, here's something to get you started:
 
Question
  Can a double-bottom base have a handle, or = is it=20 just the start of another base?
3D""=20
  Answer
 
In a double-bottom base, the pivot=20 (buy) point typically occurs when the stock clears the peak in = the=20 middle of the W-shaped pattern. Sometimes, = double=20 bottoms will form handles before they reach this point. In = those=20 situations, the pivot point is when the stock clears the = highest price=20 point in the handle area. The handle should drift downward = slightly=20 and usually form over a period of one to seven = weeks.

Course 1=20 in the IBD Learning Center on our Web site has a lesson on = chart=20 reading. To get there directly, go to this link - http://www.investors.com/learn/B09.asp=20

Also, go to our Investor's Corner archive entitled = =93What Can=20 Technical Indicators Tell Me?=94 to view past articles on this = topic -=20 http://www.investors.com/learn/IC.asp#tech=20

Our =93Ask Bill O=92Neil=94 archive offers a = compilation of=20 Q&A=92s on the subject of chart reading at this link - = http://www.investors.com/askBill/Search_ByTopic.asp?Topic= ID=3D5
 
--Katherine
----- Original Message ----- =
From:=20 vchang@win-invest.com =
To: canslim@lists.xmission.com= =20
Sent: Tuesday, July 30, = 2002 7:18=20 PM
Subject: [CANSLIM] DCOM - = B/O=20 rules

MessageOn Wedsday's edition (today) IBD listed DCOM = as b/o=20 from a double
bottom.  On Tuesday IBD weblink said " ... = Dime hit=20 25.94 Monday, just
missing a breakout..." .

As a newbie = trying=20 to learn more about charts and breakouts, this seems like
a = great=20 example to check my understanding.

If I am getting it = right, the=20 reason why DCOM is deemed to have b/o is
because of the = following two=20 easons:

a) It closed at 26.90 having achieved an high of = 27.0, and=20 that is above the
previous high of 26.80 back in May 17,=20 2002.

b) The new high was achieved at a volume 1,056,800 = which is=20 378% up from the
day before and four times the average daily = volume of=20 221,100

What is the exact rule for a breakout = mathematically? (Lets=20 say that I were
to program it in say Metastock?)

Base on = this=20 case I can see two rules at least (in pseudo-code):

IF = today's high=20 is greater than the previous high (is this the all time high
or = just=20 the rolling 52 week high?)
AND
IF today's volume is greater = than N=20 times the normal volume (is this some
sort of moving average of = the=20 daily volume, or just yeaterday's volume)
THEN yippe it is a=20 B/O

Is  there any "fuzziness" to the above = rules?

BTW,=20 the fundamentals on DCOM also look great, ignoring M for a moment, = is
this a valid CANSLIM candidate = stock?

Rgds

Victor=20 = Chang


- ------=_NextPart_000_003C_01C23862.5C06DFA0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 31 Jul 2002 04:29:35 -0700 (PDT) From: Jack Tencza Subject: Re: [CANSLIM] DCOM - B/O rules Tom, what date are you using for midpoint between the two dips with DCOM? Thanks - --- Tom Worley wrote: > I have to agree with IBD on this one, Mike. No cup > & handle, definitely would call this a double > bottom. Keep in mind with a double bottom that you > don't want two dips of equal depth, rather you want > the second one undercutting the first. Same with a > triple bottom. In this case, the second dip reached > its bottom on a reversal day and closed up. However > volume was not that impressive. > > An aggressive investor (and would take one in this > market) could have bought on 7/29, as it did trade > over the high of the high of the center point of the > "W" (but only by 4 cents, and volume not > impressive). But yesterday's volume and price > movement would mark this in my books as a b/o from a > double bottom. > > ----- Original Message ----- > From: Katherine Malm > To: canslim@lists.xmission.com > Sent: Wednesday, July 31, 2002 6:47 AM > Subject: Re: [CANSLIM] DCOM - B/O rules > > > Hi Mike, > > Here's a quote from today's "Big Picture" > Dime Community Bancshares (DCOM), which was > highlighted in Monday evening's WebLink, broke out > of a 10-week, double-bottom base. The stock climbed > 1.46 to 26.90 on more than four times normal volume. > > Katherine > > ----- Original Message ----- > From: Mike Gibbons > To: canslim@lists.xmission.com > Sent: Tuesday, July 30, 2002 11:37 PM > Subject: RE: [CANSLIM] DCOM - B/O rules > > > I see it more as a cup-with-handle (but when the > only tool you have is a hammer, everything looks > like a nail!) because the two dips were not of equal > depth, but I'm not sure what the tolerance limits > are. > > However, as a CwH it formed a pivot at $25.90 on > 7/10. It then went on to dip to a low of $20.20 in > the handle, which was a 22% drop. WON says that a > stock should only correct by at most 15% in the > handle (although there are inconsistent statements > on this) so it didn't qualify as a CwH either (but > then virtually nothing has in the last couple of > weeks). Nevertheless, todays breakout was very > strong and could be buyable up to $27.12 (5% above > pivot). > > Aloha, > > Mike Gibbons > Proactive Technologies, LLC > http://www.proactech.com > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf > Of Katherine Malm > Sent: Tuesday, July 30, 2002 2:46 PM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] DCOM - B/O rules > > > Hi Victor, > > I'll leave the specific analysis of the DCOM > chart to somebody else, but in the meantime, here's > something to get you started: > > Question > Can a double-bottom base have a handle, > or is it just the start of another base? > > Answer > In a double-bottom base, the pivot (buy) > point typically occurs when the stock clears the > peak in the middle of the W-shaped pattern. > Sometimes, double bottoms will form handles before > they reach this point. In those situations, the > pivot point is when the stock clears the highest > price point in the handle area. The handle should > drift downward slightly and usually form over a > period of one to seven weeks. > > Course 1 in the IBD Learning Center on our > Web site has a lesson on chart reading. To get there > directly, go to this link - > http://www.investors.com/learn/B09.asp > > Also, go to our Investor's Corner archive > entitled "What Can Technical Indicators Tell Me?" to > view past articles on this topic - > http://www.investors.com/learn/IC.asp#tech > > Our "Ask Bill O'Neil" archive offers a > compilation of Q&A's on the subject of chart reading > at this link - > http://www.investors.com/askBill/Search_ByTopic.asp?TopicID=5 > > --Katherine > > ----- Original Message ----- > From: vchang@win-invest.com > To: canslim@lists.xmission.com > Sent: Tuesday, July 30, 2002 7:18 PM > Subject: [CANSLIM] DCOM - B/O rules > > > MessageOn Wedsday's edition (today) IBD listed > DCOM as b/o from a double > bottom. On Tuesday IBD weblink said " ... > Dime hit 25.94 Monday, just > missing a breakout..." . > > As a newbie trying to learn more about charts > and breakouts, this seems like > a great example to check my understanding. > > If I am getting it right, the reason why DCOM > is deemed to have b/o is > because of the following two easons: > > a) It closed at 26.90 having achieved an high > of 27.0, and that is above the > previous high of 26.80 back in May 17, 2002. > > b) The new high was achieved at a volume > 1,056,800 which is 378% up from the > day before and four times the average daily > volume of 221,100 > > What is the exact rule for a breakout > mathematically? (Lets say that I were > to program it in say Metastock?) > > Base on this case I can see two rules at least > (in pseudo-code): > > IF today's high is greater than the previous > high (is this the all time high > or just the rolling 52 week high?) > AND > IF today's volume is greater than N times the > normal volume (is this some > sort of moving average of the daily volume, or > just yeaterday's volume) > THEN yippe it is a B/O > > Is there any "fuzziness" to the above rules? > > BTW, the fundamentals on DCOM also look great, > ignoring M for a moment, is > this a valid CANSLIM candidate stock? > > Rgds > > Victor Chang > > > > ===== Jack __________________________________________________ Do You Yahoo!? Yahoo! Health - Feel better, live better http://health.yahoo.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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